$22 million in assets held for sale. $4.x million to hopefully be generated in sale and leaseback of HQ, THIS month, per the 10-Q. Will announcement of this sale leaseback's closing "goose" the stock.
I'm not so much worried about the stock being "goosed"....but I would like to think that their having $22 M in assets to sell off and generate liquidity with, this year, will help them to "weather the storm," and buy them the time to keep working on strengthening the business model. The elimination of the "going concern" clause with this year's 10-K is a MAJOR achievement....and certainly evidences that the stock is not recognizing the significantly LESSENED short term risk here.
But I guess everyone thinks revenues are going to keep dropping 25-30% ever quarter, year over year, forevermore. If they do, we are toast. But if they can staunch those declines (as they seem to be telegraphing in their comments about order rates "stabilizing" in the 10-K), this stock could get a decent "lift." In short, for those NOT involved here, as long as you are not a widow or orphan, this is a very attractive speculation at current prices. Excellent management team here. If anyone can turn this sucker around, it is them.
Longtime Follower. The management team is inept. I've been there. I've seen the "inaction" that has occurred. Look at Culp and STI. They have a strategy. Quaker was too little too late. It's done. They are liquidating. Spoke with employees today (now former). They are told...no health benefits...etc. City of Fall River is organizing information centers for soon to be ex-employees. You need to wake up...it's over.
Don't be fooled, sale and leaseback is just another word for cash-out mortgage.
I think most of us here are bottom feeders by trade. We have all seen many of these 'death watch' boards, where each new level of increased debt brings halfhearted cheers and a little reprieve for the share price. But how many of those stocks are still listed? How many of the boards can you now reach only through bookmarks?